california has better weather. but that does not solve the problem in stand ready no. kennedy tried to ask people at city hall what happened. selected job prospects are better in texas. john: that is true. politicians could grab your land. but they do have the freedom to arm themselves. thinks to this woman.

her parents were murdered. >> with the guy that did it was like a rabid dog. >> buying a handgun in california is not a simple task. john: or even a license to open a business. texas vs. california. that is our show. tonight. john: 20% of you one at a five americans lives in texas or california. california is the biggest texas is the second california is a dream where movie stars and beaches growing at more than double the national average until 1990. over the last decade to

million more americans moved out of california and moved in. many moved to other states the texas population grew at double the national rate. one of those is chuck devore author of the texas model saying that texas governs better. matt welch also moved from california by your magazine is still based their? why is reason magazine in the horrible state? >> that is where we have spent since 1971 and it gets us outside of the beltway thinking but it is a challenge to be there. and you are right it is a new thing in california will

space retract immigrants. john: but the movie industry and stuff is happening. >> california has silicon valley, hollywood, a biotech but you cannot live off that narrow band of industry forever. because of high taxes, regulation, and healthy lawsuits, government spending people are leaving. john: great davis in the '90s said we have all of this cash from the.com boom. >> he spent that cash on public sector pension promises and general spending to everybody even austerity spending has gone up. john: beyond population growth. global warning -- warming

measure. >> high-speed rail that nobody wants. john: even "the terminator" the republican and i thought here is a politician quoting milton friedman. what happened? >> he enacted the largest tax increase at the state level in history. i resigned as the chief republican whip in protest. john: he also funded stem cell research. i talk to the guy pushing this and i said you could pay for this yourself why is it a government job? >> democrats wanted to stick a thumb into the eye of georgia bush just like the emission standards to say we are californians.

john: then i read this organization has to be revamped, a conflict of interest, all of this money is invested? >> now with about the initiative another large tax increase in history now by $50 billion. but they are lying. revenue projections will not come true. the balanced budget looks good in jittery but then the revenues come of you say it is a shortfall. it could be a billion or $30 billion. we will see that happen again. john: chuck devore you moved to texas? >> the states are so similar. population, the second and third states with land mass

mass, more similar than different, both last with natural resources and a coastline with ports. similar on the surface why are the results so different? because they are governed it differently. state and local level consumes one-third more of the economy in california and texas. said one-third of the nation beaufort one negative 11 negative welfare recipients are in california all there 1/8 of the population. everything. john: a percentage of households receiving public assistance is much higher in california and lower than average in texas. that means that you start the pork people. >> 42% lower cost of living

in texas and california. u.s. census bureau has been criticized over 20 years for not taking into account the cost of living that different states with housing and food and clothing. john: there was the old poverty rate measure were texas lost 16 percent of the people in california were in poverty, of 17 percent in texas but now it includes the cost of living. >> and government benefits. with this new measure would week after the election news see the state with the highest poverty rate in the nation is california even higher than the district of columbia. that should be a warning to progressives who maintain the big government model is the path of to prosperity.

we argue it is the opposite. texas is a model of how america could be better ride and more prosperity with less government. john: texas gained more than 1 million jobs by paul krugman says in the "new york times" what is of a texas miracle? the employee rate was eight-point to%. that is not great but california was 11.8%. >> they had over 10 percent unemployment every month of brock obamacare presidency until last november. john: still 3 percent higher than texas. >> higher than the national average every month since 1980. john: regulation? >> a huge difference. it was so bad in california

the democrats allowed the lot to be passed that sought to find the cost of regulations on small business. arnold schwarzenegger was so embarrassed he did not wanted to come out. be average cost is $133,000 per year with. the legislature passes 900 bills per year. texas legislature in session every two years when they do 40 days. in california they say you cannot hire a psychiatrist to try to make your kid not a gay. that crazy specificity. john: i have covered than gauge your psychiatrist. i think it is nonsense but it should be your right to pursue it.

>> not the right of the legislature to tell you what you need to do. and up penalties for throwing citrus onto the baseball field. seriously. >> i did not vote for it. john: you could navigate the regulations if you are a technology company. >> you hire lawyers and compliance experts to navigate through the bureaucratic maze. to build a strip of just to get permission to break ground it may take between four and five months in texas it could take between four and five years in california. that drives up the cost of housing and business with complexes and factories in california. john: from the outside it is obvious. one works and not as well

but the politicians are not faced? >> you have a home field advantage in california that it is a nice place to live along the coast. especially if you're in the highlight industry. everywhere else is desperation, poverty and population running away. the coast can have incredible wealth dynamism but the state has a hard time when. >> another issue that comes into play california is not right to work they have powerful unions, government unions. there is no counterpart in texas. people are free to have associations and unions to spend millions of dollars to promote bigger government and higher taxes. john: more prosperity in texas. thank you.

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in. >> everybody has a gun. john: that scene from his congeniality times. deal want to buy a gun in texas? it is easy. restrictions just a federal background check. you can get one in three days. waiting periods, assault weapons, after connecticut's it california politicians propose more rules. hundreds of thousands of previous legal guns illegal. then give them to the government. but texas wants to make it easier for teachers to carry what a terrible idea says leland yee from san francisco. from texas, susanna likes the idea of the teachers packing heat.

>> because of my background i know what it is like to be in a defenseless situation that is there to execute lawyers can protect themselves, chiropractors can protect themselves, why can't teachers? they are like second-class citizens. john: years ago you restaurant when a dead man came in and killed your mom and dad? >> 23 people. the first real mass shooting in 1991. john: people say tougher gun laws. views say the opposite. and you wrote a book about it. explain your reasoning. >> at that time you could not get a concealed carry permit. they did not exist.

i would leave my gun in my car we were having lunch. a mad man drove his truck to the window and began executing people. i cannot tell you what it is like to be a fish in a girl waiting to be your turn. it just prevented us from being able to protect ourselves. john: leland yee you disagree? >> i used to work in the school as a psychologist. i don't know if any teacher or administrator that wants to carry a gun into a classroom or school. then why not supermarkets? hospitals? john: find.

>> that is not the way we want to operate. in california we are about educating kids not to pack a gun and shoot them if somebody comes into your school. >> we're not talking about the children to carry weapons for the people who can already carry in the supermarkets. >> what is the lesson that we say to the kids? when you grow up to solve your problem carry a gun? that should not be the life lesson. john: the police carry guns. they ought to. >> they protect the people of california. john: california has been restrictions but there are

more murders in california per-capita than texas. your gun law does not work. >> not true. studies have demonstrated jurisdictions with the toughest gun laws are the safest. john: that is nonsense. >> absolutely not true. john: chicago. washington d.c.. oakland spinet per-capita data it is absolutely true those with the toughest gun control are the safest. >> can i interject? john: i just want to contradict how do explained stockton per capita and oakland among the highest murder rates in the nation?

>> if you look at the entire jurisdiction that is what we talk about. you cannot look at individual cities. >> mr. leland yee can you name one single place in the united states where there was a mass shooting wear guns were allowed? if they were then why did we not see them at the gun show? you talk about places where there thousands of guns in the hands of law-abiding citizens. >> with columbine that did not stop those individuals from shooting and slaughtering individuals.

just having a gun does not stop the other individuals. >> it absolutely will stop them. in texas we have several schools you mention note teachers or ministers would want to carry. we have several that already do carry. >> you'll always find one or two here and there. but overall teachers college you want to pack a gun? the answer resoundingly is no. john: then the politicians do not have to get involved why you have to be involved to so the teacher that wants to that she may not?

>> no. if you are a teacher and purchase a gun and goes to the background check you will have one in. john: okay in the school? >> no. absolutely not. we don't allow the students why would we let teachers. >> you make that a killing zone. >> it is a gun free zone. >> that is where the bad guys go to rack up the dead count. that is where they go on. john: we will not solve this. leland yee and suzanna hupp. weapons when your town goes bankrupt? comparing texas and california.

john: people to leave hotel california. they cannot pay the bill. four cities have declared they grips the. including san brady no. the results is not pretty. >> it breaks down to nothing >> they are empty. parking lots are empty. >> there is no opportunity. it is like a ghost town. john: 34 so the city's many went to public safety cops and firemen. they promised much where many and the town had. to the people realize that

is the reason? no. special correspondent kennedy went there to ask you with bankruptcy people like the cops and firefighters. >> they are heroes. who is to say what is too much? >> i don't blame anyone in particular. >> he is in the prison guards union making $66,000 per year before benefits. >> we give so much and it they don't get anything back >> we give it to the unions. absolutely. >> you pay the union dues and we pay for your pension. >> of course. john: of course, . with benefits is as close at $20,000 limit the firefighters salary has doubled now they make

$150,000 per year. john: people are not upset? in the ignorance is bliss but nobody seemed happy. john: kennedy thought the mayor's office would be the place. >> and city hall is a nice building. it looks expensive. that maybe the problem. let's get answers. people this to working seven days a week. >> i walked down the empty hallway looking for a mayor. for anybody. it was creepy. anyone here? hello? i found it empty conference room and decided i would takeover. >> figure for coming. it is great to have you.

i and the acting mayor. not a lot of happening. any say -- and the thing i shall look back on the aegean -- agenda? a busy day. we have a lot of problems. businesses with shutter doors and i don't hear answers from any of you. john: they were supposed to be in the office? >> police stopped on fridays john: the city attorney told the residents go home and lock your doors and a load your guns. >> he was there and would not talk to us. >> one blamed the city manager for spending money on the movie theater. >> it is nice but nothing compared to the 45.$8 million deficit this city is running. when they filed for bankruptcy they had wanted

to $50,000 in the citibank account. john: the politician said we did not see it coming. they owed 46 million with panetta thousand of the bank? >> they're required to put 1.8 million dollars per month into koppers. john: they tried to raise money through fees like expensive parking tickets. >> i paid $500. >> but he was going 90 in the school's own. john: with that does not cover the pension obligations. >> not sandy know, vallejo, a compton, a stockton or any of their city. they are failing. john: i hear there is more

civil society? volunteers working in the animal shelter, park maintenance, a neighborhood watch is starting to blossom? >> bay plant their city back. they take it themselves. so the private solution is always better. john: that is where you go when the government spends of the many. next we take this problem and see what it does to the whole state. it is not pretty. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro.

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and. john: california is paradise for government workers. her person texas has more but california pays better

and gives out such a generous retirement benefits that california will probably go broke. 50 year-old retirees were promised they could collect forever until they died then their spouse collects. dan mitchell studies state pension problems with the cato institute and kevin james is running to be mayor. how bad is it? people want to be responsible i think. >> i am not sure. politicians want to be reelected and state government workers want to get as much as they can before the house of cards comes down. there are too many people writing in the wagon netted of people pulling now they raise taxes cc the productive people leaving the state more people living

off the government sooner or later nobody is there to pay the bills. john: but california has a higher cost of living. >> even with that this does not justify the difference of the $50,000 average for 70,000. california prices itself out of the market. john: and calpers assumed the 8% rates of return. now they just lower it down at seven point* 5% like that is responsible. why do they think they can make that rate of return? >> tonight i will party with the victoria secret supermodel. it would happen if calpers will not meet those targets

that means the unfunded liability which is a huge will become enormous they cannot pay their bills the same way greece cannot. john: talk about los angeles. you are running for mayor but that the los angeles city council members $78,000 per year? >> we had a councilwoman to the house of representatives to take a cut in pay. >> there each given a car? >> something else they get a car that has a license plate

that says exempt so the park at the meeting without a ticket for parking tickets are through the roof with all of the fines and fees that they keep wanting to take, it is not good for business and chase's customers away into neighboring communities where they are not abused. john: $170,000 per year verses 37,000 in dallas or san antonio 1,400. >> those are part-time. john: but they get it done a day and come up with this into perspective nationally. is this a mind set? >> during the boom years for

decades people were pouring into the state government could charge more to get the great climate but at some point* we hit the tipping level it is just too expensive to create jobs or the bloated work force or maintain the pensions but if more than 50 percent are riding on a the wagon government welfare beneficiaries, how do you change? that makes me pessimistic. a beautiful state ruined by big government. john: battle texas between california, but texas is winning but up next, those who prefer california.

that. john: texas is less likely to go broke in california with you were stupid rules probably with total less regulation but it has

control freak politicians than your property may be safer in california says the institute for justice, a scott bullock. why? >> texas has bad law with private property rights civil forfeiture laws are aggressive and potent with the government to take property even if you are not convicted or arrested for a crime in the burden is on the property owner to get it back. john: explain it to more. you made this video. if police arrest to prosecutors must prove you're guilty before you go to jail. >> but if they suspect your car was involved they can take it, sell it and pocket the proceeds. a civil forfeiture the property is guilty until

proven innocent. because most states and federal laws allow them to pocket the proceeds they can pursue profit seven justice. 1986 they took in $94 billion now it has more than 1 billion. facie cash and cars and other property taken away carrying too much cash? they can accuse you and seizure of property. john: just because you have too much cash? >> they can accuse you of a drug dealer or laundering money even if there is no reason to suspect of wrongdoing. >> but the police officer considers to be a large amount. 900, the 2000 and the burden

shifts to the property owner. >> that would cost much more. >> most people give up so they can win by default that is of the cases turn out. john: a truck was lost because he loaned it to somebody who drove drug? >> happens all the time. people who were innocent can face the loss of property. also prosecutors keep 90 percent of the proceeds from forfeiture. to give a perverse incentive to take as much as possible. john: the chief of police bought a margarita maker with the funds. >> california is not great. >> but they keep 65% giving

them a bad and perverse incentive and the burden is on the government to prove that you did something wrong. john: the best dates are made the comment north dakota and vermont. and in its domain texas past a constitutional amendment you cannot do that. >> does have for better law ban originally. they passed lot after kilo but they made exemptions including the cowboys stadium for the takeover would hundred pieces of property to build the model with to the cowboys now california is better because

they are broke and one of the things the state did to improve finances to abolish redevelopment agencies around the state and they were the main abusers so the fiscal crisis protects property owners. >> so no base deal few were people's property. john: licensing rules. what it takes so in texas shampoo workers? >> one of five states and requires people to shampoo to be licensed and have to pass two mediums that we successfully did that this morning that is ridiculous there is no justification. john: texas is one of the

few states you have to go to college four years in order to coach any sport. they take there sport's very seriously it is just a barrier to a legitimate occupation. john: commercial fisherman pays $5,000 in fees but california is worse? but. >> they have very draconian laws but texas is 17th in the nation it is better than california but there is room john: we found something that california does okay to add one more thing we should be very grateful to california.

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john: thank you california. america needs you the way we needed the soviet union as a model of failure to warn us what happens if we listen to those that say government does it better. the ussr -- u.s.s.r. died 20 years ago. i am grateful now we have not just california california, illinois,

connec ticut to remind us what power mad politicians to. that is not fair american states are not dictatorships. if you live in a big government states you can move and vote with your feet. i did. a group of illinois but then i stayed but gradually politicians gave the way -- a boy the future that soon illinois will not have nominee for much i moved to new york city it is not political paradise but this is whether the tv news jobs were. at least new york -- new york and not bankrupt us to suber i could move again i am stuck with federal law but it is an advantage to live in a country of 50 states. each is a laboratory of democracy. i can move there if they get

right to. the free state project invites you to move to new hampshire to create liberty. is too early to see how that works for ironclad we have states. in europe, one just moved to belgium to expose one negative 68 to 75 percent tax on rich people and david bowie moved to switzerland and rod stewart to lowe's angeles. i wonder if he will move back? he had. in 2010 he moved back to england. americans who want to escape kim moved to alaska florida and new hampshire nevada south dakota tennessee texas washington and royal bank. all have state